Owner-occupier refinancing has more than doubled compared with two years ago, with the total value of refinancing during June exceeding $16 billion.
The increased competition has lenders offering interest rates below 2%, as well as cash bonuses and incentives worth up to $5,000.
ING Bank and ME Bank, which recently merged with the Bank of Queensland, are offering cash incentives of up to $3,000 for refinancers as well as fixed interest rates from 1.89%.
RateCity research director Sally Tindall says the current interest rates on offer are highly competitive and can save home-owners thousands in just a few years.
“A $1 million principal and interest borrower on the average rate of 3.07% who refinanced to the lowest two-year fixed rate of 1.79% could save up to $25,057 in two years,” she says.